October 01, 2013
At the 2013 Houston Marine Insurance Seminar, Don Harrell, Senior Vice President of Marine-Americas for Liberty International Underwriters shared the results of a recent LIU Survey of marine and exploration & production (E&P) risk managers who provided insight on the challenges they face insuring their operations.
While outlining their challenges, the risk managers also offered suggestions for the insurance market to help them better manage and anticipate their risk. Nearly all the risk managers commented on the benefits that insurance companies offer beyond the provision of risk transfer products. Above all, the risk managers agreed on the virtues of a long-term, personal business relationship with their insurer partners.
As part of a panel discussion, “State of the Marine & Energy Market”, Mr. Harrell discussed the risk managers’ candid remarks about the significant concerns they encounter regarding insurance. Through a series of frank interviews, the following issues were raised:
- A protracted scarcity of property insurance capacity for windstorm risks.
- The lack of cost-effective contingent business interruption insurance to transfer supply chain exposures.
- Problems over insurance coverage gaps and pricing methodologies.
- Rising anxiety over reputational risk.
- A professed need for more expansive, insurer-provided loss engineering services.
An Executive Summary of the 20-page white paper is posted and downloadable at LIU-USA.com. The full white paper, with detailed risk manager comments, will be available later in the fall.
Liberty International Underwriters (www.LIU-USA.com), part of Liberty Mutual Insurance, is a global specialty lines insurer serving brokers, agents and their customers.
